HIRJI CHANABHAI SAVLA,MUMBAI vs. DCIT CPC, BENGALURU

The assessee has filed the appeal against the order of National Faceless Appeal Centre (NFAC), Delhi/ CIT(A) passed u/s143(1) and U/sec 250 of the Act.

The Hon’ble Tribunal in Miscellaneous Application filed by the revenue in MA No. 240/Mum/2023 order dated 27.06.2023 has recalled the Tribunal order dated 18.05.2022 considering the decision of the Hon’ble Supreme Court in the case of Checkmate

At the time of hearing, the Ld. AR submitted that the assessment was completed u/s 143(1) of the Act with disallowance of PF&ESI contribution of Rs.1,45,135/- and earlier the Hon’ble Tribunal has allowed the assessee appeal and on MA of the revenue the Tribunal order was recalled. The Ld.AR emphasized that there was never an opportunity to the assessee to submit the details of payments/deposits before the AO. The Ld. AR contentions are that the important facts of date of deposits of PF are to be verified and there is disallowance as per the intimation U/sec 143(1) of the Act and the assessee has made deposits/payments within the due date allowed under the respective Acts. The Ld.AR pleaded for one more opportunity before the lower authorities to substantiate with the material evidences. Per Contra, the Ld. DR supported the order of the CIT(A)..

Heard the rival submissions and perused the material on record. The sole matrix of the disputed issue is with respect to the disallowance of contributions of PF & ESI by the Assessing Officer u/s 143(1) of the Act. The contentions of the Ld.AR that the assessee has deposited the employees contributions of PF within the grace period allowed under respective act and these details were not dealt by the A.O. and prayed for one more opportunity of hearing before the lower authorities. We find the return of income was processed under 143(1) of the Act and there was never an opportunity to the assessee to submit the details and the Ld.AR referred to Form.No.3CD, in particular to PF & ESI chart placed at page 152 &153 of the paper book and emphasizing the details on the payments. Therefore, considering the facts and circumstances and to meet the ends of justice, shall provide with one more opportunity of hearing to the assessee to substantiate the claims before the assessing officer and for limited purpose, restore the disputed issue to the file of the Assessing officer to examine and verify the claim and decide on the merits. And the assessee should be Hirji Chanabhai Savla, Mumbai. - 4 - provided adequate opportunity of hearing and the assessee should cooperate in submitting the information. Accordingly, allow the grounds of appeal of the assessee for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.